Trying to make sense of school budget figures

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News

July 23, 2015 - 12:00 AM

MORAN — Taxpayers may find themselves doing a double take when they see their respective school districts’ spending plans for the 2015-16 school year.
For example, Marmaton Valley-USD 256 has recently set up its budget for 2015-16.
The spending plan includes general fund expenditures of $3,193,073 — more than $650,000 higher than the district’s general fund in 2014-15 — despite the ever-so-consistent 20 mills taxpayers have spent for years to support general fund operations.
So taxpayers should be thrilled, with much more bang for their bucks, right?
Not necessarily, responded Craig Neuenswander.
Iola’s former superintendent of schools, now school finance director for the Kansas Department of Education, noted changes in the state’s school funding laws give the appearance schools are spending substantially more money in 2015-16.
With the state’s new block grand funding formula, approved by state legislators and signed into law by Gov. Sam Brownback in June, previous expenditures are now funneled through the general fund budget.
Two prominent line items — KPERS and special education — stand out for USD 256.
The funding for KPERS, the retirement program for public employees — set at $217,317 for 2015-16 — is first sent to the district’s general fund, then disbursed into the proper spending areas, Neuenswander explained. Another $396,596 dedicated for special education also goes to the general fund first.
Neither had been considered a part of the general fund until this year.
“It’s going to look really strange,” Neuenswander noted.

FOR Marmaton Valley, local taxpayers will be asked to spend slightly more for their local options budget in 2015-16, even though LOB spending will decrease.
School districts use local options budgets to raise additional funds through property taxes, and some added state equity money, to supplement its general fund.
Marmaton Valley taxpayers spent 21.204 mills for its LOB in 2014-15, a number expected to increase to 23.249 this year.
Even with the higher tax levy, LOB spending will drop from $863,000 to $848,000.
Again, that’s because of changes in the state funding formula, Neuenswander said.
The state reduced the amount of aid it gives districts for LOB funding, putting the onus on local school boards to attempt to keep their spending levels static.
Marmaton Valley taxpayers also will pay 6.806 mills, the same as in years past, to retire general obligation bonds used for upgrades to the elementary, junior high and high schools in 1997. Those bonds are set to expire in 2017, although board members are investigating whether they can be paid off as early as next year.

SO WHAT does this mean for Marmaton Valley taxpayers?
With its combined ad valorem tax levy an estimated 50.055 mills, the owner of a $50,000 house would spend $241.80 in property taxes to support USD 256 this year. It should be noted property owners also must still pay taxes to support Allen County, Allen Community College, the City or Moran or other local townships. (Those figures are not included.)
Two other caveats:
— First, USD 256 school board members must sign off on the published budget following an Aug. 10 budget hearing. The public is invited to ask questions about the spending plan prior to its passage.
— Second, the mill levy figures won’t be finalized until the district’s assessed valuation is determined in the fall.

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